Happy Money

Happiness is something that everyone wants to have, and the reward that most people look forward to is money. People have different definitions of happiness but usually they say it is the feeling of stability and contentment. Money can provide both of these things which might be why its relationship with happiness is so strong. Surveys around the world have shown that rich countries were happier that poor countries and that the richer a country gets, the happier it will be, “155 countries covering 95% of the world’s population. It turns out that rich countries are indeed happier than poorer ones, and as countries get richer, they get happier…”. However, after reaching a certain point (an average income of $75,000), the amount of growing happiness decreases. As a result, people will most likely gain happiness with more money but to keep that happiness growing, it will depend on how they spend it.
There is a difference between happiness and satisfaction of life. Money helps both of these factors grow. After a certain point in time when your income has grown to an amount where you are satisfied, your amount of happiness starts to level off. However, your life satisfaction continues to grow. This is because it’s harder to increase a higher number than a lower number, “…a 10% rise yields a roughly similar rise in well-being to everyone in the world. A 10% increase in a very poor country like Burundi is equivalent to a 10% increase in a very rich country like the U.S.  But to get a 10% increase in ¬Burundi doesn’t take a lot of dollars, whereas in the U.S. it takes a lot.”
The rich aren’t always necessarily happier than the poor. Richard Easterlin’s theory was that there was no correlation between absolute income and satisfaction in life. Easterlin’s conclusion had two major findings: the relationship of money and happiness between countries was almost nonexistent while the relationship within a country was strong. This might be due to the fact that different countries have different situations. For example, people in a country where crime and corruption is common will most likely have gotten used to it and are content with their lives. People in a country with inferior healthcare will also be satisfied with those conditions. Although this shows how it can be difficult to compare happiness between countries, the general population in a rich country still tends to be happier than the population in a poor country. Overall, the rich are often happier than the poor. A rich person has an advantage over a poor person because they can afford to be less careful. They tend to have more stability and can make a few mistakes every now and then. “The first thing I did when I had a well-paying job is I stopped looking at those price tags. Now I never really feel stressed about money…” A poor person on the other hand, has to constantly think about saving money and spending methods. They also have fewer opportunities for free time which can contribute to their amount of happiness.
The way people spend their money also determines their levels of happiness. In “…recent research on happiness suggests that the most satisfying way of using money is to invest in others. This can take a seemingly limitless variety of forms, from donating to a charity that helps strangers in a faraway country to buying lunch for a friend…” In three studies that examined the relationship between happiness and money spending, two factors resulted in high happiness levels. They were higher income and spending money on others or charity. While the rich were generally happier than the poor, this might be because the rich had more money to give away. In the second study, employees who spent their bonuses on others had higher happiness levels than those who spent it on themselves. In the third study, people were asked to spend a certain amount of money (ranging from $5-$20) on others and their happiness levels were about the same. These studies demonstrate how the amount of money a person has doesn’t necessarily determine that person’s happiness, but the choices they make do.
Often times when people’s incomes reach a certain amount, their happiness amounts will start to level off. This is because they have become satisfied with their lives. People can’t rely on only money for happiness, they have to spend it the right way to benefit. Spending money on others will usually bring positive results. In conclusion, rich people will often have more opportunities to be happier than poor people but they need to make the right choices to maintain their level of happiness, which shows how the relationship between money and happiness is strong.